Rosenblatt maintains Webull buy rating with $12 target following Q4 earnings

Core Viewpoint - Rosenblatt maintains a buy rating and a $12.00 price target for Webull, indicating a 115% upside from its current price of $5.62 [1] Group 1: Financial Performance - Webull generated $163.8 million in total revenue during Q4 2025, reflecting a 60.9% year-over-year increase [1] - Net deposits for Webull grew by $3.9 billion over the quarter, bringing total customer assets to $24.6 billion [2] Group 2: Trading Growth and New Products - Webull's trading growth across various segments, including equities, options, futures, cryptocurrencies, and prediction markets, contributed positively to the valuation target [2] - New products like prediction markets and cryptocurrencies experienced a 104% quarter-over-quarter daily average trade growth [2] Group 3: Expenses and Profitability - An 81% quarter-over-quarter increase in marketing and branding expenses totaled $53.3 million, impacting profitability and operating profit [3] - Lower options trading volumes presented challenges, with options contract volumes reaching 154 million in Q4, below the forecast of 159 million [4] Group 4: Adjusted EBITDA Multiple - Due to current market conditions, Rosenblatt reduced its 2027 estimated adjusted EBITDA multiple for Webull from 25x to 20x [4]